Welcome!

News Feed Item

DragonWave Inc. Reports Third Quarter Fiscal Year 2014 Results

OTTAWA, CANADA -- (Marketwired) -- 01/13/14 -- DragonWave Inc. (TSX:DWI)(NASDAQ:DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, today announced financial results for its third quarter ended November 30, 2013. All figures are in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles.

Revenue for the third quarter of fiscal year 2014 was $22.2 million, compared with $25.5 million in the second quarter of fiscal year 2014 and $38.5 million in the third quarter of fiscal year 2013. Revenue from the Nokia Solutions and Networks ("NSN") channel represented 51% of revenue in the fiscal quarter.

Gross margin for the third quarter of fiscal year 2014 was 11.1%, compared with 11.0% in the second quarter of fiscal year 2014 and 18.6% in the third quarter of fiscal year 2013. We expect solid gross margin improvement starting in Q4.

On January 10, 2014 we signed a new supply agreement with a major US-based carrier. Activities associated with the first project with this carrier are underway. Deployments from the projects anticipated under this agreement are expected to commence during the first half of 2014.

"Network rollout plans in the United States and India are at the core of our future growth strategy. To position ourselves for these opportunities we have increased and extended our credit facilities in addition to the cash we raised in September" said DragonWave President and CEO, Peter Allen.

Net loss applicable to shareholders in the third quarter of fiscal year 2014 was $5.5 million or ($0.12) per basic and diluted share. This compares to a net loss applicable to shareholders of $10.5 million or ($0.28) per basic diluted share in the second quarter of fiscal year 2014 and net loss of $13.9 million or ($0.36) per basic and diluted share in the third quarter of fiscal year 2013.

Cash and cash equivalents totaled $23.5 million at the end of the third quarter of fiscal year 2014, compared to $9.8 million at the end of the second quarter of fiscal year 2014.

Webcast and Conference Call Details:

The DragonWave management team will discuss the results on a webcast and conference call beginning at 8:30 a.m. Eastern Time on January 14, 2014.

The live webcast and presentation slides will be available at the Investor Relations section of the DragonWave website at: http://investor.dragonwaveinc.com/events.cfm

An archive of the webcast will be available at the same link.

Conference call dial-in numbers:

--  Toll-free North America: (877) 312-9202 
--  International: (408) 774-4000 

About DragonWave

DragonWave® is a leading provider of high-capacity packet microwave solutions that drive next-generation IP networks. DragonWave's carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably. The principal application of DragonWave's products is wireless network backhaul, including a range of products ideally suited to support the emergence of underlying small cell networks. Additional solutions include leased line replacement, last mile fiber extension and enterprise networks. DragonWave's corporate headquarters is located in Ottawa, Ontario, with sales locations in Europe, Asia, the Middle East and North America. For more information, visit http://www.dragonwaveinc.com.

DragonWave® and Horizon® are registered trademarks of DragonWave Inc.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to DragonWave's growth opportunities and the potential benefits of, and demand for, DragonWave's products as well as our expectations regarding margin improvement. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of DragonWave's products compared to competitive offerings in the industry and, in relation to expected margin improvement, the timing of revenues and expenses. Readers are cautioned not to place undue reliance on such statements. DragonWave's actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of DragonWave to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by DragonWave with U.S. and Canadian securities regulatory authorities. DragonWave assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

Forward-looking statements are provided to assist external stakeholders in understanding DragonWave's expectations as of the date of this release and may not be appropriate for other purposes. Material risks and uncertainties relating to our business are described under the heading "Risks and Uncertainties" in the MD&A dated January 13, 2014 and in the Company's Annual Information Form dated May 17, 2013 and other public documents filed by DragonWave with Canadian and United States securities regulatory authorities, which are available at www.sedar.com and www.sec.gov, respectively.

                        CONSOLIDATED BALANCE SHEETS                         
                Expressed in US $000's except share amounts                 
                                (Unaudited)                                 
                                                                            
                                                       As at          As at 
                                                November 30,   February 28, 
                                                        2013           2013 
                                              ------------------------------
Assets                                                                      
Current Assets                                                              
  Cash and cash equivalents                           23,545         22,959 
  Trade receivables                                   19,009         35,452 
  Inventory                                           31,642         32,722 
  Other current assets                                 4,920          6,077 
  Contingent receivable                                    -         13,843 
  Deferred tax asset                                      69             69 
                                              ------------------------------
                                                      79,185        111,122 
Long Term Assets                                                            
  Property and equipment                               3,848          7,444 
  Deferred tax asset                                   1,536          1,581 
  Deferred financing cost                                  -            149 
  Intangible assets                                    1,617          2,771 
  Goodwill                                            11,927         11,927 
                                              ------------------------------
                                                      18,928         23,872 
                                                                            
Total Assets                                          98,113        134,994 
                                              ------------------------------
                                              ------------------------------
                                                                            
Liabilities                                                                 
Current Liabilities                                                         
  Accounts payable and accrued liabilities            26,484         56,962 
  Debt facility                                            -         15,000 
  Deferred revenue                                       664          1,163 
  Capital lease obligation                             1,985          3,251 
  Contingent liabilities                                  50            255 
                                              ------------------------------
                                                      29,183         76,631 
                                                                            
Long Term Liabilities                                                       
  Debt facility                                       15,000              - 
  Capital lease obligation                                 -          1,451 
  Warrant liability                                    2,260              - 
  Other long term liabilities                            625            783 
  Contingent liabilities                                   -            519 
                                              ------------------------------
                                                      17,885          2,753 
                                                                            
Commitments                                                                 
                                                                            
Shareholders' equity                                                        
  Capital stock                                      196,853        179,429 
  Contributed surplus                                  6,948          6,047 
  Deficit                                           (142,840)      (120,197)
  Accumulated other comprehensive loss                (9,679)        (9,685)
                                              ------------------------------
Total Shareholders' equity                            51,282         55,594 
                                                                            
  Non-controlling interest                              (237)            16 
                                              ------------------------------
Total Equity                                          51,045         55,610 
                                                                            
Total Liabilities and Equity                          98,113        134,994 
                                              ------------------------------
                                              ------------------------------
                                                                            
                                                                            
Shares issued & outstanding                       52,823,364     38,048,297 
                                                                            
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
         Expressed in US $000's except share and per share amounts          
                                (Unaudited)                                 
                                                                            
                               Three months ended         Nine months ended 
                        ----------------------------------------------------
                        November 30, November 30, November 30, November 30, 
                                2013         2012         2013         2012 
                        ----------------------------------------------------
                                                                            
                                                                            
REVENUE                       22,169       38,452       72,154       95,583 
 Cost of sales                19,709       31,314       64,080       77,569 
                        ----------------------------------------------------
Gross profit                   2,460        7,138        8,074       18,014 
                        ----------------------------------------------------
                                                                            
EXPENSES                                                                    
 Research and                                                               
  development                  5,000        9,769       15,085       26,307 
 Selling and marketing         3,479        3,935       10,036       11,950 
 General and                                                                
  administrative               4,144        6,218       13,325       20,001 
                        ----------------------------------------------------
                              12,623       19,922       38,446       58,258 
                        ----------------------------------------------------
Income (loss) before                                                        
 amortization of                                                            
 intangible assets and                                                      
 other items                 (10,163)     (12,784)     (30,372)     (40,244)
                                                                            
 Amortization of                                                            
  intangible assets             (500)      (1,162)      (1,496)      (2,903)
 Accretion expense               (53)         (16)        (174)         (68)
 Restructuring expense             -         (839)           -       (1,637)
 Interest income                                                            
  (expense)                     (392)        (500)      (1,310)      (1,211)
 Impairment of                                                              
  intangible assets                -       (4,407)           -       (8,424)
 Equity issuance                                                            
  expenses                      (662)           -         (662)           - 
 Gain on change in                                                          
  estimate                     2,970        5,416        3,312        6,958 
 Gain on contract                                                           
  amendment                      417            -        5,702            - 
 Gain on purchase of                                                        
  business                         -            -            -       19,397 
 Fair value adjustment -                                                    
  warrant liability            3,587            -        3,587            - 
 Foreign exchange gain                                                      
  (loss)                        (724)         419       (1,219)        (122)
                        ----------------------------------------------------
Income (loss) before                                                        
 income taxes                 (5,520)     (13,873)     (22,632)     (28,254)
                                                                            
 Income tax expense                                                         
  (recovery)                     102           63          270         (509)
                        ----------------------------------------------------
Net Income (loss)             (5,622)     (13,936)     (22,902)     (27,745)
                                                                            
 Net Loss Attributable                                                      
  to Non-Controlling                                                        
  Interest                       113           69          259          177 
                        ----------------------------------------------------
Net Income (loss)                                                           
 applicable to                                                              
 shareholders                 (5,509)     (13,867)     (22,643)     (27,568)
                                                                            
Income (loss) per share                                                     
 Basic                         (0.12)       (0.36)       (0.55)       (0.74)
 Diluted                       (0.12)       (0.36)       (0.55)       (0.74)
                                                                            
Weighted Average Shares                                                     
 Outstanding                                                                
 Basic                    47,329,275   38,033,222   41,144,953   37,313,926 
 Diluted                  47,329,275   38,033,222   41,144,953   37,313,926 

Contacts:
Nadine Kittle
Marketing Communications
DragonWave Inc.
[email protected]
613-599-9991 ext. 2262

Russell Frederick
CFO
DragonWave Inc.
[email protected]
613-599-9991 ext. 2253

Becky Obbema
Interprose Public Relations
(for DragonWave)
[email protected]
(408) 778-2024

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
They say multi-cloud is coming, but organizations are leveraging multiple clouds already. According to a study by 451 Research, only 21% of organizations were using a single cloud. If you've found yourself unprepared for the barrage of cloud services introduced in your organization, you will need to change your approach to engaging with the business and engaging with vendors. Look at technologies that are on the way and work with the internal players involved to have a plan in place when the ine...
The now mainstream platform changes stemming from the first Internet boom brought many changes but didn’t really change the basic relationship between servers and the applications running on them. In fact, that was sort of the point. In his session at 18th Cloud Expo, Gordon Haff, senior cloud strategy marketing and evangelism manager at Red Hat, will discuss how today’s workloads require a new model and a new platform for development and execution. The platform must handle a wide range of rec...
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.